OUTCROP SILVER ANNOUNCES PARTNER FUNDED MAIDEN DRILL PROGRAM AT THE PEARL COPPER PROJECT, ARIZONA
MWN-AI** Summary
Outcrop Silver & Gold Corporation has announced the initiation of its maiden drill program at the Pearl Copper Project in Arizona, which is being fully funded by Golden Mile Resources Limited. Under an earn-in agreement, Golden Mile is investing A$2 million to acquire a 51% interest in the project, while Outcrop Silver retains a 1% net smelter return royalty. The Pearl Copper Project is located in the Laramide porphyry copper district, a significant copper-producing region responsible for 70% of U.S. copper output.
The drilling program aims to explore high-grade copper-silver-gold targets at the Odyssey and Ford prospects and has received all necessary permits from the Bureau of Land Management and the Arizona State Land Department. The program will consist of 14 to 16 reverse circulation holes, totaling up to 1,800 meters, to assess the prospective mineralization.
Ian Harris, President & CEO of Outcrop Silver, highlighted that this partnership enables the company to advance the Pearl project without financial burden, allowing it to focus capital on its flagship Santa Ana silver project in Colombia. The Pearl project is strategically positioned adjacent to influential mining operations, including BHP’s former San Manuel-Kalamazoo Mine and Capstone Copper’s Pinto Valley Mine.
Golden Mile’s investment strategy features potential additional funding of A$10 million for further exploration, which could expand their stake and establish a joint venture. This strategic focus on the Pearl Copper Project complements Outcrop Silver’s broader objective to enhance shareholder value while adhering to responsible mining practices.
As both companies progress, the results from the drill program may unlock further opportunities within this prolific copper district, contributing to the overall growth of their respective portfolios.
MWN-AI** Analysis
Outcrop Silver & Gold Corporation's announcement of a fully funded maiden drill program at the Pearl Copper Project in Arizona is a notable development within the copper exploration sector. This strategic partnership with Golden Mile Resources Limited allows Outcrop Silver to advance its exploration potential at the Pearl Project without incurring additional costs, underscoring its prudent financial strategy of focusing resources on its flagship Santa Ana silver project in Colombia.
The Pearl Copper Project is situated in the Laramide porphyry copper district — a region that significantly contributes to U.S. copper production, thus providing a favorable backdrop for discovering high-grade resources. The planned drill program targeting the Odyssey and Ford prospects, utilizing reverse circulation (RC) techniques over 1,800 meters, has the potential to yield valuable data that could enhance the project's viability.
Investors should note that successful outcomes from the ongoing drill program may enhance shareholder value. Golden Mile’s ability to earn a 51% stake by funding A$2 million in exploration expenditures indicates a credible commitment to developing the project, which may draw further interest from additional partners or investors. The retention of a 1% net smelter return (NSR) royalty by Outcrop Silver ensures continued revenue streams.
However, the investment landscape also carries inherent risks, including market volatility, regulatory hurdles, and the ever-present possibility of exploration failures. Therefore, while the near-term potential appears promising, investors should conduct thorough due diligence and keep abreast of exploration results from the Pearl Project, which will likely influence share performance in the coming quarters.
In summary, Outcrop Silver stands at a promising juncture with this partnership, but stakeholders should maintain a balanced view of both the opportunities and risks involved in commodity exploration investments.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
VANCOUVER, BC , May 8, 2025 /CNW/ - Outcrop Silver & Gold Corporation (TSXV:OCG, OTCQX:OCGSF, DE:MRG) ("Outcrop Silver") is pleased to announce the commencement of the maiden drill program at the Pearl Copper Project located in Arizona , United States . The drilling campaign will be fully funded by Golden Mile Resources Limited (ASX: G88), whereby Golden Mile is currently earning a 51% interest through funding this A$2 million maiden drill program. Outcrop Silver retained a 1% net smelter return (NSR) royalty.
Highlights
- Outcrop Silver advances the Pearl Copper project through an earn-in agreement with Golden Mile Resources (ASX:G88). Program fully funded by Golden Mile .
- The Pearl project is located in the prolific Laramide porphyry copper district, which is responsible for 70% of the United States of America's copper production.
- All drilling permits secured from the Bureau of Land Management (BLM) and the Arizona State Land Department (ASLD).
- The maiden drill program to test high-grade copper-silver-gold targets at the Odyssey and Ford prospects has commenced.
" Golden Mile's fully funded drill program moves Pearl forward at no cost to Outcrop Silver and exemplifies our strategy of unlocking value from non-core assets while we focus capital on expanding the high-grade Santa Ana silver project in Colombia ," stated Ian Harris , President & CEO of Outcrop Silver.
The Pearl Copper project is located in the Laramide porphyry copper district, one of the most prolific copper-producing regions globally, accounting for approximately 70% of U.S. copper production. The project sits immediately north of BHP's past-producing San Manuel-Kalamazoo Mine and along the trend with Capstone Copper's active Pinto Valley Mine, benefiting from exceptional infrastructure and a skilled local workforce.
Following the receipt of all required exploration permits, including the Notice of Intent (NOI) from the BLM and the Special Land Use Permit (SLUP) and Geologic Field Operation Plan (GFOP) from the ASLD, drilling has commenced. This maiden drill program consists of 14 to 16 reverse circulation (RC) holes totaling up to 1,800 metres, and will test two priority targets.
Transaction
On September 12, 2024 Golden Mile purchased an option on Pearl for A$100,000 (Australian Dollars) with Outcrop Silver retaining a 1% NSR royalty. Golden Mile has the option to earn-in to 51% by funding A$2,000,000 in exploration expenditures by September 12, 2027 . Golden Mile may also earn an additional 34% by funding an additional A$10,000,000 in exploration expenditures within 5 years. Upon completing the earn-in a joint venture will be formed with both parties funding proportionally. If either party dilutes below 10%, their interest will convert to an additional 1% NSR royalty. At such time that a JORC compliant resource achieves 750,000 tonnes of contained copper at a minimum grade of 0.3%, Golden Mile will pay Outcrop Silver A$2,000,000 .
The Pearl Copper project was acquired through the amalgamation with Zacapa Resources. Zacapa's portfolio also included the Kramer Hills brownfield oxide gold project in San Bernardino, California and the South Bullfrog, gold project in Beatty, Nevada adjacent to Anglo Gold's Silicon project.
Qualified Person
Edwin Naranjo Sierra is the designated Qualified Person within the meaning of the National Instrument 43-101 and has reviewed and verified the technical information in this news release. Mr. Naranjo holds a MSc. in Earth Sciences, and is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr. Naranjo Sierra is a consultant to the company and is therefore independent for the purposes of NI 43-101.
About Outcrop Silver
Outcrop Silver is a leading explorer and developer focused on advancing its flagship Santa Ana high-grade silver project in Colombia . Leveraging a disciplined and seasoned team of professionals with decades of experience in the region. Outcrop Silver is dedicated to expanding current mineral resources through strategic exploration initiatives.
At the core of our operations is a commitment to responsible mining practices and community engagement, underscoring our approach to sustainable development. Our expertise in navigating complex geological and market conditions enables us to consistently identify and capitalize on opportunities to enhance shareholder value. With a deep understanding of the Colombian mining landscape and a track record of successful exploration, Outcrop Silver is poised to transform the Santa Ana project into a significant silver producer, contributing positively to the local economy and setting new standards in the mining industry.
About Golden Mile
Golden Mile is a project development and mineral exploration company. The primary focus is on growing the Company with a multi-asset and multi-commodity strategy through advancing core projects, acquiring high-quality assets, and tactical alliances with joint venture partners.
ON BEHALF OF THE BOARD OF DIRECTORS
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "potential," "we believe," or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Outcrop Silver to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the receipt of all necessary regulatory approvals, capital expenditures and other costs, financing and additional capital requirements, completion of due diligence, general economic, market and business conditions, new legislation, uncertainties resulting from potential delays or changes in plans, political uncertainties, and the state of the securities markets generally. Although management of Outcrop Silver have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Outcrop Silver will not update any forward-looking statements or forward-looking information that are incorporated by reference.
SOURCE Outcrop Silver & Gold Corporation
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FAQ**
How does Outcrop Silver's partnership with Golden Mile Resources and the A$2 million funding for the Pearl Copper project's maiden drill program impact Outcrop Gold Corp OCGSF's financial stability and future exploration plans?
What specific high-grade copper-silver-gold targets will the maiden drill program at the Pearl Copper project focus on, and how does this relate to Outcrop Gold Corp OCGSF's overall strategic goals?
Can you elaborate on the potential implications of the 1% net smelter return (NSR) royalty retained by Outcrop Silver for shareholders of Outcrop Gold Corp OCGSF as Golden Mile Resources progresses with its earn-in agreement?
Given the production history of the nearby San Manuel-Kalamazoo Mine, what are the expectations for mineral resource discovery and validation from the Pearl Copper project's drill program in relation to Outcrop Gold Corp OCGSF's market position?
**MWN-AI FAQ is based on asking OpenAI questions about Oriental Culture Holding LTD (NASDAQ: OCG).
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